Zeke Company sells a single product. The selling price per unit is $32 and unit variable cost is $24. Fixed costs forthe year are $100,200.What if selling price goes up by 13%, variable costs go up by 11% and fixed costs go up by 13%? What is the newbreakeven point in units?Do not round any intermediate calculations. Round your final answer up to the nearest whole number.

Breakeven point is the point of sales where the contribution is just equal to the fixed costs. The…

Answered: Zeke Company sells a single product.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You Break It, We Fix-it Repair Shop has a monthly target profit of $18,900. Variable costs are 62% of sales, and monthly fixed costs are $7,500. (Note: 100% of Sales = Variable Costs + Contribution Margin). (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. (Fixed Costs (Fixed Costs + + + + Expected sales - Target Profit) Target Profit) 1 1 Contribution Margin per ratio (%) Contribution Margin ratio (%) = = = = Required Sales in Dollars to Break-even Required Sales in Dollars to meet Target Profit Break-even sales = Margin of safety in dollars 2. Express what You Break It, We Fix-it Repair Shop margin of safety is as a percentage of target ales. Margin of safety in dollars/ Expected sales in dollars = Margin of safety ratio (%)
Keep two decimals for all answers if needed. Assume a firm’s fixed cost is $1003, its product has a variable cost of $42, and a selling price of $87. What is the break-even point? How many units must be sold to make a total profit of $500?
An analysis of accidents in a rural state indicates that widening a highway from 30 ft to 40 ft will decrease the annual accident rate from 1,250 to 710 per million vehicle-miles. Calculate the average daily number of vehicles that should use the highway to justify widening on the basis of the following estimates: (i) the average loss per accident is $1,200; (ii) the cost of widening is $117,000 per mile; (iii) the useful life of the widened road is 25 years; (iv) annual maintenance costs are 3% of the capital investment; and (v) MARR is 12% per year. (a) 78 (b) 63 (c) 34 (d) 59 (e) 27. A super market chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is considering two options to bake its own bread.
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